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Dell Supply Chain Models, Explained
Dell Supply Chain Models, Explained
Dell Supply Chain Models, Explained
(MIS)
Q.1
Ans :- A supply chain is defined as a network of organizations and business processes for procuring
materials transforming raw materials into intermediate and finished products and distributing the
finished products to customers. ) It links suppliers, manufacturing plants, distribution centers, retail
outlets, and customers to supply goods and services from source through consumption. supply chain
management is the integration of supplier, distributor and customer logistics requirements into one
cohesive process.
This model helped the company access its customers and study their needs directly. Based on this data,
the brand implemented additional products and services according to customers’ preferences. This
made it stand out among other computer hardware manufacturers early on.
Customer place orders on Dell’s website. In this order, the customer specifies their
requirements, like the computer configuration and specifications.
The customer’s requirements are forwarded to the manufacturing department.
The assembly of the custom PC begins.
The computer is ready and shipped to the customer.
This model brought the retailer a range of competitive advantages, such as low inventory carrying costs
and the ability to quickly replace defective components as they are detected. However, due to the
growth of innovative technologies and changes in the computer industry, the customers changed their
needs as well. Customization was no longer crucial for them. So in 2010, the company reinvented its
supply chain and shifted to the segmented model that targeted several groups of customers with
different needs and buying capacity.